O $1,551.22 Activity Frame $1,163.42 O $1,318.54 O $1,706.34 Fox spent $1,500 on a marketing study to estimate the number of units that it can sell each year. What should Fox do to take this information into account? O The company does not need to do anything with the cost of the marketing study because the marketing study is a sunk cost. O Increase the NPV of the project $1,500. O Increase the amount of the initial investment by $1,500.
O $1,551.22 Activity Frame $1,163.42 O $1,318.54 O $1,706.34 Fox spent $1,500 on a marketing study to estimate the number of units that it can sell each year. What should Fox do to take this information into account? O The company does not need to do anything with the cost of the marketing study because the marketing study is a sunk cost. O Increase the NPV of the project $1,500. O Increase the amount of the initial investment by $1,500.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Activity Frame
$1,551.22
$1,163.42
$1,318.54
$1,706.34
Fox spent $1,500 on a marketing study to estimate the number of units that it can sell each year. What should Fox do to take this information into
account?
The company does not need to do anything with the cost of the marketing study because the marketing study is a sunk cost.
Increase the NPV of the project $1,500.
Increase the amount of the initial investment by $1,500.
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